SoftBank has agreed to pay $6.5 billion for Ampere Computing, a Silicon Valley chip start-up. The deal reflects SoftBank’s belief that Ampere’s chips can play a significant role in artificial intelligence, competing with the likes of Nvidia. SoftBank acquired Arm Holdings in 2016 and has been working to expand the use of Arm-based chips for various tasks.
The future of artificial superintelligence requires breakthrough computing power, according to Masayoshi Son, SoftBank’s chairman. SoftBank will operate Ampere as a wholly owned subsidiary. The deal comes amidst a high demand for chips used in A.I. applications like OpenAI’s ChatGPT.
SoftBank has announced a series of transactions to increase its presence in the A.I. field, including the Stargate initiative that involves a $500 billion investment in U.S. data centers. Nvidia has been named a key technology partner for this venture.
Ampere has had some successes in marketing microprocessors for data center jobs but faces competition from tech giants like Amazon, Google, and Microsoft who are developing their own Arm-based microprocessors. However, Oracle remains a supporter of Ampere, offering online services powered by its chips.
As part of the purchase, Oracle and Carlyle Group agreed to sell their stakes in Ampere. The market for microprocessors used in A.I. is expected to grow significantly in the coming years, with IDC predicting it to reach $33 billion by 2030. Despite challenges, Ampere’s acquisition by SoftBank signals a significant investment in the future of A.I. technology.
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